C1 Misses Chance to Boost Price of Its Sale to Bank of the Ozarks

C1 Financial in Tampa, Fla., was unable to seize an opportunity to bring in more money for its sale to Bank of the Ozarks in Little Rock, Ark.

The $1.7 billion-asset C1 Financial would have earned a higher price for its shareholders had it successfully sold a $43 million portfolio of Brazilian loans at a premium to what Marcelo Faria de Lima, a C1 director and large investor, had already agreed to pay. The arrangement with de Lima was a condition of the $403 million sale of C1 to the $9.9 billion-asset Bank of the Ozarks.

C1 disclosed in a regulatory filing Friday that the marketing process for the portfolio had ended with no offers higher than what de Lima had agreed to pay under a standby purchase agreement.

"Based on the results of the marketing process, C1 does not believe that there will be an increase in the consideration payable to C1 shareholders under the merger agreement as a result of a sale of the Brazilian loans," the filing said.

De Lima agreed, under terms of the standby agreement, to buy the loans at about 75% of the loans' aggregate net book value.

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